First two images is information given, third is to be filled out
. 1 J A B D E F G 1 Project: Completing a Master Budget 2 3 The following data relate to the operations of Penner Corporation, a wholesale distributor of consumer goods: 4 5 Current Assets as of March 31: 6 Cash 5,700 7 Accounts Receivable 32,400 8 Inventory 16,170 9 Buildings & Equipment, net 109,140 10 Accounts Payable 21,384 11 Capital Stock 100,000 12 Retained Earnings 42,026 13 14 a. Gross Margin percentage: 34% of sales 66% (i.e. this percentage is COGS) 15 16 b. Actual and budgeted sales data (each unit sells for $100) are as follows: 17 March (actual) 540 18 April 980 19 May 840 20 June 790 21 July 670 22 23 c. 24 All sales are on account. 40% are collected in the month of sale while the other 60% are collected in the following month. 27 The accounts receivable at March 31 are the result of March credit sales. 28 29 d. Each month's ending inventory should equal: 30 25% of the following month's budgeted COGS. 31 32 This is a merchandising business. Because of this, there is no direct materials, direct labor or MOH (we are not making units). 33 34 e. 40% of a month's inv purchases are paid in the month of purch. 35 60% are naid in the following month H 1 J B D E G 24 All sales are on account 40% are collected in the month of sale while the other 60% are collected in the following month. 27 The accounts receivable at March 31 are the result of March credit sales. 28 29 d. Each month's ending inventory should equal: 30 25% of the following month's budgeted COGS. 31 32 This is a merchandising business. Because of this, there is no direct materials, direct labor or MOH (we are not making units). 33 34 e. 40% of a month's inv purchases are paid in the month of purch. 35 60% are paid in the following month. 36 37 f. Monthly expenses are as follows (paid monthly): 38 Commissions 9,400 39 Rent 40 Other expenses (excluding depr) 12% of sales 41 Depreciation per month: 1,200 (includes new assets purchased this quarter) 42 43 g Equipment will be acquired for cash: 44 May 12000 45 June 4300 46 47 h. A dividend will be paid in April 5300 48 2,500 i. Isaac would like to maintain a minimum cash balance of $5000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 18% annually, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. A borrowing in the last month 49 will be repaid the following quarter with interest. 50 51 52 53 A B D E F 1 Quarter Schedule of Expected Cash Collections 2 April May June 3 Accts Rec beg bal 4 April Sales 5 May Sales 6 June Sales 7 Total Collections 8 9 10 11 12 15
